Indexed Variable Annuities: Navigating The Balance Between Risk And Reward
November 14, 2023 by James A. Hofmann
Navigating the intricate waters of retirement planning is laden with challenges, paramount among which is the looming shadow of sequence of return risk, a precarious pitfall with the potential to unravel financial stability. This risk manifests when an individual faces lower or even negative returns early in retirement, precisely when withdrawals are being made from the retirement funds. Essentially the client retires at an unlucky time with negative markets. The ramifications of this timing can be profound, potentially affecting the retiree’s capacity to achieve their retirement aspirations and, in more dire scenarios, risking running out of funds.
Wink’s Moore on the Market: Am I missing something?
Why would someone suggest that structured annuities can help with sequence of returns risk, if you can earn zero (or even less!) in any given year?
“Low risk of underperformance?” Really? Educate me. Please! Join in the LinkedIn conversation HERE! -sjm